Allowance for doubtful accounts

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Reference no: EM13913828

At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2013, it has outstanding accounts receivable of $111,500, and it estimates that 3% will be uncollectible.

Prepare the adjusting entry to record bad debts expense for year 2013 under the assumption that the Allowance for Doubtful Accounts has

*(a)*	a $1,896 credit balance before the adjustment.
*(b)*	a $558 debit balance before the adjustment.

Adjusting entries (all dated December 31, 2013).

Prepare the adjusting entry to record bad debts expense for year 2013 under the assumption that the Allowance for Doubtful Accounts has a $1,896 credit balance before the adjustment.

Reference no: EM13913828

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